Why aren't you all protesting about being tied into such oligopolies? America is supposed to be about free markets and open choice.
But that's basically what they are, they're natural monopolies but are in some ways more heavily regulated as if they were competitive businesses where anti-competition law would be easier to execute. Notice wherever Google Fiber tries to move in how much better service and performance gets while at the same time the local one or two choices step over themselves in outrage.
If the music industry were saying "punish them! turn off their water!" people would probably better understand just exactly how vindictive they're trying to be.
To be fair, you've just replaced a oligopoly with a monopoly.
Openreach is a government-controlled monopoly, but US telecom is heavily regulated too. Both charge what the government lets them.
As you point out, rural support is a lot less if no one can recoupe infrastructure expenses. The UK has 5x the population density of the US.
So...you might be right, but it's not a clear-cut answer from basic principles.
The advantage of the Openreach model is that the last-mile infrastructure is treated like a public good. Anyone can lease bits of that infrastructure and everyone pays the same regulated rates. The system ensures that the monopoly is as small as possible, segregating out the stuff that's a natural monopoly from the stuff that naturally supports competition.
Thanks to Openreach, I have a meaningful choice over my internet service. I can choose dirt cheap service from a multinational, or I can pay a premium for specialist service. If my ISP starts doing traffic shaping or has lousy customer support, I can choose from any number of other ISPs.
Agreed, but suggesting "America is supposed to be about free markets" therefore it should have a monopoly isn't a compelling argument.
It should be a monopoly despite the normal free market model, not because of it.
It seems what is basically needed is some investment in infrastructure and some legislation to help remove the barriers to entry. But the US moves slowly to do such things unless there is money to be had. I remember some folks in the late 90's or early 2000's that were just getting home phone service, after all - out west in the mountains. Additionally, the lobbyist for these companies have more money than God. (debatable, but you get the picture). Normal folks making 25,000 a year can't compete with that - their yearly salaries are a drop in the Lobby's bucket.
"America is supopsed to be about free markets and open choice" And technically, it still is, they say, so long as you can afford to do provide all of the infrastructure and get through all the red tape.
[0] http://arstechnica.com/business/2015/01/fcc-chairman-mocks-i...
Perhaps another way of putting how I see it - excluding really heavy traffic like video or (cough) torrenting linux isos (cough), you're rarely saturating your broadband bandwidth with casual internet use. Whereas with dial-up/non-broadband, it didn't matter what you did, you were saturating your bandwidth and always waiting.
(YMMV - this is just how I see the term 'broadband' as a qualitative label)
After a certain point the thing rate limiting you for most network usages (including web browsing) stops being your own connection to the ISP and starts being other things, like the speed of the website you are visiting under whatever load it is currently under, the website's own bandwidth out to the greater world (split up among however many people use it), etc.
I currently have 300/20 service, and though I see a nice set of numbers when I visit speed testing sites, in typical real world web browsing situations it feels no faster than the old 30/5 service I had before this.
This a textbook antitrust violation, at least by US law (specifically, agreeing to partition markets in this way and not compete with each other). In the absence of some exception in federal law (state law would not suffice), I'd love to see someone go after them with an antitrust case.